Astrazeneca in £173m Alzheimer’s drug deal

12:01AM GMT 29 Dec 2005

Astrazeneca has signed a £173m agreement with US group Targacept to develop a compound aimed at treating Alzheimer’s disease and schizophrenia, the drug giant’s fourth deal this month as it continues to plug the gaps in its pipeline of new medicines.

Biopharmaceutical company Targacept will receive a £6m up-front payment for its TC-1734 compound, currently in mid-stage phase II clinical trials, followed by milestone and research payments which bring the potential total to more than £170m.

It will also receive royalties. Targacept develops drugs which treat disorders of the central nervous system – a core strategic area for Astrazeneca. Astra-zeneca shares rose 36 to £28.31.